Korea Digital Asset (KODA) Pioneers New Era with Venture Business Certification

Korea Digital Asset (KODA), a blockchain-based digital asset custody service jointly founded by Hashed and KB Kookmin Bank, has achieved a groundbreaking milestone by becoming the first Virtual Asset Service Provider (VASP) to secure the prestigious Venture Business Certification from South Korea’s Ministry of SMEs and Startups (MSS). Announced on October 10, this certification—officially awarded on October 9—signifies a pivotal moment for KODA and the broader digital asset industry in South Korea.

Unlocking New Opportunities Through Legislative Reform

KODA’s certification comes in the wake of a monumental revision to the "Special Act on the Promotion of Venture Businesses," which is governed by the MSS. This amendment to the Enforcement Decree, ratified during a cabinet meeting on October 9, is set to take effect on October 16. It reverses prior restrictions that barred blockchain-based cryptocurrency sales and brokerage firms from obtaining Venture Business Certification.

Under older regulations, crypto-related businesses faced systemic challenges in qualifying for this certification, as they were often categorized as high-risk entities—comparable to gambling or casino-related operations—despite no explicit provisions defining them as restricted industries. This legislative shift signifies a long-overdue recognition of the sector’s legitimacy and potential.

KODA now stands as the first VASP to benefit from this policy overhaul, setting a precedent for other companies in the blockchain and cryptocurrency space. Prior to this, VASPs often saw their certification applications denied or revoked due to outdated regulatory biases.

Transforming Industry Perceptions

Jin-Seok Cho, CEO of KODA, spoke on the transformative implications this certification holds for the digital asset ecosystem. “This milestone marks a significant departure from the negative stereotypes that equated our industry with high-risk sectors like nightlife entertainment and gambling. The official acknowledgment as a venture business not only validates our compliance and innovation but also signals a broader acceptance of blockchain and crypto technologies,” Cho emphasized.

He further highlighted the advantages this achievement could unlock for the digital asset sector. Venture Business Certification provides access to an array of government-backed benefits, including tax reductions, easier access to policy financing, and support for research and development (R&D) activities. These incentives can potentially fuel greater investments in digital asset firms while creating new opportunities for job development and market expansion.

A Catalyst for Broader Industry Progress

This certification extends beyond a symbolic win for KODA—its ripple effects are expected to transform the blockchain and cryptocurrency landscape in South Korea. By achieving compliance and aligning with governmental regulatory frameworks, businesses like KODA can inspire confidence across both institutional and retail markets.

Encouraged by this precedent, more digital asset companies may now prioritize compliance, paving the way for innovation, enhanced trust, and broader adoption of blockchain technologies. Moreover, the incentives tied to venture status could attract new players to the field, fostering a more vibrant and competitive industry.

A Significant Step Toward Mainstream Recognition

For the South Korean government, this legislative adjustment and KODA’s certification signal a readiness to embrace the economic potential of blockchain and cryptocurrencies. It reflects a progressive policymaking mindset that simultaneously supports innovation and aligns emerging technologies with regulatory safeguards.

The recognition of KODA as a certified venture business is not just a milestone—it is a testament to a paradigm shift. As the first beneficiary of this reformed framework, KODA has laid the groundwork for an era in which digital assets are no longer sidelined but are instead championed as pivotal components of the country's technological and economic advancement.